REG - Castillo Copper Ltd - Optimising Cangai Copper Mine

Castillo CopperAnnouncement

09/03/2023 07:00

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RNS Number : 3633S  Castillo Copper Limited  09 March 2023

09 March 2023

 

 

CASTILLO COPPER LIMITED

("Castillo", or the "Company")

 

 

Optimising Cangai Copper Mine

 

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily
focused on copper across Australia and Zambia, announces that it has approved
plans to update and enhance the confidence in the 2017 inferred JORC Mineral
Resource Estimate ("MRE") (Figure 1) for Cangai Copper Mine, one of
Australia's highest grading historic copper mines,  following a recent site
visit by David Drakeley, his first since being appointed as geologist and
Director of Castillo.

 

HIGHLIGHTS:

 

·    Following a recent visit to Cangai Copper Mine by geologist and
director David Drakeley, the Board has approved plans to update and enhance
the confidence in the 2017 inferred JORC MRE - 107,589t contained copper metal
(3.2Mt @ 3.35%)(1)

·    Considerable drilling work post-2017, which includes 34 RC and two HQ
diamond core drill-holes for a total of 5,222m(2,3), will be factored into the
updated geological model - the best intercepts from these campaigns comprised:

·    11m @ 5.94% Cu; 2.45% Zn & 19.13g/t Ag from 40m including:

o  3m @ 8.1% Cu; 2.84% Zn & 23.42g/t Ag from 41m

o  1m @ 10.25% Cu; 1.68% Zn & 32.50g/t Ag from 48m

o  1m @ 7.53% Cu; 6.04% Zn & 30.60g/t Ag from 50m (CC0023R)(2)

·    5m @ 1.56% Cu, 4.43g/t Ag & 0.4% Zn from 92m including:

o  3m @ 2.22% Cu, 6.38g/t Ag & 0.60% Zn (CC004RC)(4)

·    4.39m @ 5.06% Cu, 2.56% Zn and 20.1 g/t Ag from 49.9m (CC0036D)(3)

·    Furthermore, the model will factor in bulk sampling done on several
historic stockpiles (which should support a higher confidence Indicated MRE),
drone topographic survey and re-positioned mine workings that are accurately
geo-referenced

·    Pleasingly, Cangai Copper Mine still delivers material exploration
potential as six down-hole electro-magnetic ("DHEM") surveys identified two
untested off-hole bedrock conductors interpreted to be open at depth(1)

·    Once the work is complete, which is expected to take 4-8 weeks, the
Board will review the findings and determine the optimal way to further
develop Cangai Copper Mine's full potential

 

David Drakeley, geologist and director of Castillo Copper, said: "Cangai
Copper Mine's underlying geology is impressive, but more work is required to
fully understand the system. As such, the Board sees considerable potential to
create incremental value for shareholders by updating the 2017 MRE for
subsequent drilling campaigns and geophysical surveys. Moreover, as a
standalone project, Cangai Copper Mine still delivers significant exploration
potential with two bedrock conductors, open at depth, yet to be drill-tested.
Once the updated MRE and key geological interpretations are complete, the
Board looks forward to outlining optimal steps to fully develop Cangai Copper
Mine."

OPTIMISING CANGAI COPPER MINE

FIGURE 1: CANGAI COPPER MINE - INFERRED JORC MRE

 CANGAI COPPER MINE - INFERRED RESOURCE
        Mass       Cu    Co     Zn    Au      Ag      Cu         Co         Zn         Au      Ag

        (Tonnes)   (%)   (%)    (%)   (g/t)   (g/t)   (Tonnes)   (Tonnes)   (Tonnes)   (Oz)    (Oz)
 Oxide  814,267    4.1   0.010  0.63  0.06    27.34   33,391     78         5,165      14,550  715,667
 Fresh  2,397,342  3.1   0.003  0.28  0.89    17.74   74,198     75         6,762      68,349  1,367,456
 Total  3,211,609  3.35  0.005  0.37  0.8     20.17   107,589    153        11,927     82,899  2,083,123

Source: CCZ geology team (Reference 1)

The Board believes updating the MRE is likely to enhance the confidence in the
final result, especially given the following facts:

·    Significant drilling work post-2017, which includes 34 RC and two HQ
diamond core drill-holes for a total of 5,222m(2,3), will now be factored into
the updated geological model.

The best intercepts from these campaigns comprised:

·    11m @ 5.94% Cu; 2.45% Zn & 19.13g/t Ag from 40m including:

o  3m @ 8.1% Cu; 2.84% Zn & 23.42g/t Ag from 41m

o  1m @ 10.25% Cu; 1.68% Zn & 32.50g/t Ag from 48m

o  1m @ 7.53% Cu; 6.04% Zn & 30.60g/t Ag from 50m (CC0023R)(2)

·    5m @ 1.56% Cu, 4.43g/t Ag & 0.4% Zn from 92m including:

o  3m @ 2.22% Cu, 6.38g/t Ag & 0.60% Zn (CC004RC)(4)

·    4.39m @ 5.06% Cu, 2.56% Zn and 20.1 g/t Ag from 49.9m (CC0036D)(3)

 

·    In addition, the geological model will include bulk sampling and
metallurgical sampling done on several historic stockpiles (which is likely to
support a higher confidence classification Indicated MRE), drone topographic
survey and re-positioned mine workings that are accurately geo-referenced.

 

Exploration upside

Cangai Copper Mine still delivers exploration potential as there are at least
two untested bedrock conductors, which are open at depth, that were discovered
during DHEM surveys across 2018-19 (Figure 2).

FIGURE 2:  CANGAI COPPER MINE - CONDUCTORS & DRILL-HOLES

 Source: CCZ geology team

 

For further information, please contact:

 

 Castillo Copper Limited                                             +61 8 6558 0886 
 Dr Dennis Jensen (Australia), Managing Director                      

 Gerrard Hall (UK), Chairman 
                                                                      
 SI Capital Limited (Financial Adviser and Corporate Broker)         +44 (0)1483 413500 
 Nick Emerson                                                          
                                                                       
 Gracechurch Group (Financial PR)                                    +44 (0)20 4582 3500
 Harry Chathli, Alexis Gore, Henry Gamble                             

 

About Castillo Copper

 

Castillo Copper Limited is an Australian-based explorer primarily focused on
copper across Australia and Zambia. The group is embarking on a strategic
transformation to morph into a mid-tier copper group underpinned by its core
projects: 

 

·    A large footprint in the Mt Isa copper-belt district, north-west
Queensland, which delivers significant exploration upside through having
several high-grade targets and a sizeable untested anomaly within its
boundaries in a copper-rich region. 

·    Four high-quality prospective assets across Zambia's copper-belt
which is the second largest copper producer in Africa. 

·    A large tenure footprint proximal to Broken Hill's world-class
deposit that is prospective for zinc-silver-lead-copper-gold and platinoids.
 

·    Cangai Copper Mine in northern New South Wales, which is one of
Australia's highest grading historic copper mines. 

 

The group is listed on the LSE and ASX under the ticker "CCZ." 

 

Competent Person's Statement

The information in this report that relates to Exploration Results and Mineral
Resource Estimates for "Cangai Copper Mine" is based on information compiled
or reviewed by Mr Mark Biggs.  Mr Biggs is a director of ROM Resources, a
company which is a shareholder of Castillo Copper Limited.  ROM Resources
provides ad hoc geological consultancy services to Castillo Copper Limited.
Mr Biggs is a member of the Australian Institute of Mining and Metallurgy
(member #107188) and has sufficient experience of relevance to the styles of
mineralisation and types of deposits under consideration, and to the
activities undertaken, to qualify as a Competent Person as defined in the 2012
Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for
Reporting of Exploration Results, and Mineral Resources. Mr Biggs holds an
AusIMM Online Course Certificate in 2012 JORC Code Reporting.  Mr Biggs also
consents to the inclusion in this report of the matters based on information
in the form and context in which it appears.

 

References

1)        CCZ ASX Release - 28 September 2018 (Annual Report 2018), 3
September 2018, 19 February 2020 & 28 April 2020

2)        CCZ ASX Release - 3 September 2018

3)        CCZ ASX Release - 11 December 2018

4)        CCZ ASX Release - 3 March 2018

 

 

 

 

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